Through the parliamentary certificate to prevent "attack" on Bank in that

The critical moment when its reserves have been already extremely exhausted. Actions

The governments were equivalent to the official announcement of bankruptcy of Bank;

Thus, the precedent which has generated in a society confidence of those has been created,

That the government will always hasten on a gain to Bank, it appear that in a trouble.

We not begin while be late on the other reasons of the difficulties endured

Bank during the period till 1797, that has been connected with the governmental

Loans. We will notice, however, that credit expansion under pressing of the government,

Being in itself one of the reasons of these difficulties, at the same time weakened

Abilities of Bank to resist to the rest as, than has been called

Outflow of reserves, a method of struggle against it reduction of volumes should be invariable

Crediting.
Since 1800, on all extent of the period of fast depreciation of pound,
Accompanied by phenomenal expansion of military credits, Bank banknotes

England practically served as a lawful instrument of payment. They were not officially

Are recognised those till 1812, but as these banknotes were means
Realisation of all governmental payments and in some measure from
Patriotic reasons, as a rule, were accepted everywhere on the
Face-value.
At last, in 1812 the government declared their universal lawful means

Payment. All these events have rendered a great influence on formation of that

Position which was occupied with banknotes of Bank of England in the country. Ordinary banks became

To consider them as means of maintenance of own issue

Activity, and in many parts of the country it possible to occupy for the first time the solving

Role in local monetary circulation. One more consequence of military events

There was a creation of stimulus for the first scrupulous discussion of problems

The bank and monetary spheres, initiated by the report of Committee on the gold

To stock (Bullion Committee), with great feeling lasted far for the middle of the century.

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